Peng Zhou

Paper Title

Retirement Decisions

Purpose

The research project investigates how Australians make retirement decisions using the Household, Income and Labour Dynamics in Australia (HILDA) Survey. On reviewing the development of the Australian pension system and the literature of labour supply elasticity and optimal asset allocation, the project estimates the retirement elasticity on a career length model, analyses the gender effects and constructs retirement wealth profile crossing the retirement stage.

Originality

Apply Career Length Model on HILDA Survey

Key literature/theoretical perspective

Design/methodology/approach

Panel Data Analysis

Findings

The three main findings are the robustness of retirement decisions, the low intertemporal labour supply elasticity and less pronounced gender effects. These results explain the low responsiveness of financial incentives in the Australian social security system, and provide evidence that superannuation guarantee have not yet achieved the target on two decade development.

Practical and Social implications

The application will improve social security policy design and help individuals plan retirement finance.